Our market is not volatile as some people would expect. We are more in ¨pause¨ while everyone is watching for who the buyers and sellers will be 2020 and 2021. The majority of our 2,022 active listings are not subject to mortgages. This is key to understanding that our typical seller is not highly leveraged and has paid cash for his property. Carrying costs then are very low compared to the US or Canada where mortgages can be 90% of the value of the property.
First: 17 New Mexico City Real Estate Projects Approved – The Mexico City government has authorized the construction of 17 real estate projects in the capital as part of a plan to combat the economic impact of the coronavirus pandemic. The government has announced 14 projects on Paseo de la Reforma in the central borough of Cuauhtémoc, and three others along the avenue’s extension in the boroughs of Álvaro Obregón and Cuajimalpa.
We ended the first quarter for sales Jan-March 2020 compared to Jan-March 2019 selling condos and homes for $60,713,767 USD. This is down 32% from 2019 same time. The average sale price was $312,958 USD, down 5% from 2019. Total units sold were 194, down 29% from 2019. April will be a slow month, but for the first 6 days of April 2020, compared to same time 2019, we closed 7 transactions for a total of $2,010,534 USD down 59% from 2019.
Demand: There is supply and buyers willing and able to purchase the inventory. Opportunity.
Rarity: When there is a limited supply property in particular locations and more buyers want this type, there may still be more demand. Missed sales if the inventory is sold out.
Condition: Affects the demand. If there is a lot of work needed for the property to be in demand, the price needs to be low enough to enable the buyer to pay for repairs and not be paying over the market price. No sale if price is not right.